MKT/574: Marketing: Social, Mobile, And Analytics
MKT/574 v2 Strategic Marketing Plan Week 2 – Part A: Environmental Analysis and SWOT Analysis Business Description A well-established multinational technology Microsoft Company with the main headquarters in Redmond, Washington (USA) is Microsoft Corporation. Its goal is to enable all people, organizations, and nations to become united and make the impossible happen. The vision of the company is to come up with imaginative innovations that benefit people and provide business leaders with exceptional products and services. Microsoft delivers a whole variety of products and services like software, hardware, cloud computing, and machine learning. Microsoft stands out among most other tech employers in the world as an organization operating in over 160 countries with its overall number of employees exceeding 160,000 (Fan, 2019). Environmental Analysis Competitive Forces Microsoft contends with extreme rivalry across its businesses. The prime competitors of Apple, Google, Amazon, and IBM include Facebook, Microsoft, Alibaba, and Touché Kappas. The competitors of these companies sell products such as operating systems, productivity software, cloud computing, and customer electronics in the sustaining areas markets. The strategic actions of Microsoft in the past few years included establishing its cloud with Azure, taking part in artificial intelligence studies, and buying out the company LinkedIn and GitHub. It might be that Microsoft’s market dominance fluctuates, but it strongly remains in those segments where it is renowned (‘big name’) and is the #1 manufacturer, like productivity software and systems solutions. Economic Forces The economic environment is a factor to be considered when looking into Microsoft as a business entity. Microsoft shifts in the global economy may cause consumers to cut down on the Copyright 2023 by University of Phoenix. All rights reserved. Strategic Marketing Plan Template MKT/574 v2 Page 2 of 6 purchases of different technology goods and employment. Furthermore, the capital investments in IT may be reduced. Moreover, currency exchange rates and geopolitical disruption affect Microsoft’s foreign sales and provision of nearby services. Political Forces Political factors include regulatory regimes, trade agreements, and global political influences, which affect Microsoft’s business activities. For example, data privacy law amendments, trade tariffs, or government tenders can impact Microsoft’s operation drivers and profit performance. Also, this stability is vital in key economies by creating conditions for a fair business environment. Legal, Regulatory, and Ethical Issues The legal, regulatory, and ethical issues concern Microsoft in any jurisdiction; intellectual property rights, antitrust restrictions, privacy laws, and cybersecurity rules. The performance of data protection regulations, including GDPR and CCPA, is mandatory for the successful operation of Microsoft. Furthermore, the company has to deal with ethical issues that are related to AI ethics, data usage, and environmental sustainability. These issues have become crucial for the visibility and popularity of the brand. Technological Forces Microsoft is always keeping updated technology on the advancements in hardware and software technologies to determine their impact on the company. To Microsoft, cloud computing, artificial intelligence, the Internet thing (IoT), and quantum computing represent not only challenges but also opportunities. The firm is a major player in technological research and development (Gill et al., 2022). It allocates funds to be ahead of technological discoveries and to sustain its competitive advantage. Social Forces Rather than the traditional social trends such as digital transformation, remote work, and the rise of technology that create challenges or opportunities for the business, these trends affect Microsoft’s business strategy. The patterns of household incomes, cultural choices, and consumer Copyright 2023 by University of Phoenix. All rights reserved. Strategic Marketing Plan Template MKT/574 v2 Page 3 of 6 behaviors also show an impact on the level of product popularity and market trends. The company should track the behavior and desires of its existing clients to receive cutting-edge technologies and must balance its strategy with societal expectations. Current Target Markets Among Microsoft’s current target markets, competitive and unique above and beyond different categories are ranged across demographics, geography, and psychographics (West et al., 2022). The business serves consumers, businesses, educational institutions, and government organizations worldwide. Demographics consists of the individual/ student / professional/ SMEs/ and large enterprises as the targeted market segments. With regards to geography, Microsoft includes markets from the continent of North America, Europe, the Asia-Pacific, Latin America, and the Middle East. Psychographic variables like the likes, the kind of gadgets used, and also their everyday demands in their business are channeled through in defining the target market. Current Marketing Tactics Microsoft engages in different types of marketing tools for the promotion of its appliances and services. These range from online adverts, social media marketing, content marketing, events, sponsorships, and partnerships. The company is reliant on its online store, social media pages, and physical locations to display the items as well as connect with customers. Besides fostering the fast distribution of its products over the globe, Microsoft also has a rather wide network of channel partners and resellers that are aimed at reaching the target markets everywhere. Moreover, Microsoft in its arsenal has for its marketing operations CRM systems and analytical tools that enable tracking of promotional efficiency and return on investment. SWOT Analysis Strengths • Strong brand reputation and global presence. • Encompasses the entire range of product categories consisting of software, hardware, and cloud services. • Strong research and development capacities that help to innovate. Copyright 2023 by University of Phoenix. All rights reserved. Strategic Marketing Plan Template MKT/574 v2 Page 4 of 6 • Extended distribution network and well-established partnerships. In this interconnected world, individuals are constantly exposed to a diverse array of cultural influences. • The loyal customer base and brand recognition. Weaknesses • The inseparable link between Microsoft’s Windows OS as a key revenue source. • Limited market share in some segments (for example, smartphones). • Fear of the competitors’ stereotype of you as not innovative enough. • Harmonization of acquired companies and techno-logicalities is also difficult. • Risk factors a business can be exposed to due to cybersecurity threats and data breaches. Opportunities • Companies with business units offering cloud computing, AI, and IoT solutions have growth opportunities. • Pipeline to newly opened markets and niches. • Strategic acquisitions and associated partnerships to strengthen brands and improve product offerings. • Migration to subscription-based revenue and annuity methods. • Growth in remote work and collaborative workplace procedures. Threats • High competition within tech corporations as well as the threat of specialization players. • Rapid technological progress and innovative disruptions. • The core companies are the focus of regulatory fights and antitrust investigations. • Data security risks and data protection concerns. • Economic downturns and geopolitical conflicts. Copyright 2023 by University of Phoenix. All rights reserved. Strategic Marketing Plan Template MKT/574 v2 Page 5 of 6 Converting Weaknesses and Threats to Strengths & Converting Strengths to Opportunities • Enhancing the outdated parts of our legacy product through investing in product innovation and diversification. • Microsoft’s strong brand credibility and the customers’ trust to take benefit of upcoming opportunities in the area of cloud computing, AI, and digital transformation (Akter et al., 2020). • To prevent cyber-criminals from activities, ensure thorough data protection, and make sure customers remain assured. • Externalize partnerships and negotiations to reach new markets and categories of consumers. • Supporting customers and the local economy by offering a bundle with multiple products in the same purchase including seamless integration of payment systems for a great shopping experience. Marketing Objectives Based on the SWOT analysis, the following marketing objectives are established for Microsoft: 1. Be able to gain about 15% of market share in cloud computing cloud and AI (artificial intelligence) at the end of the current fiscal year. 2. Mean the 25% growth of revenue from subscription-based services to be achieved before the fiscal year ends. 3. Increase brand recognition and base of knowledge through various marketing campaigns like fitting in as a thought leader. 4. Increase customer sentiment and, hence, build customer loyalty using individualized communication and customer-oriented programs, 5. Correlate strategic alliances and partnerships with market penetration and expand business to the new market segments. 6. Maximize the effectiveness and efficiency of your marketing efforts by using data analytics and optimization techniques. Copyright 2023 by University of Phoenix. All rights reserved. Strategic Marketing Plan Template MKT/574 v2 Page 6 of 6 References Akter, S., Michael, K., Uddin, M. R., McCarthy, G., & Rahman, M. (2020). Transforming business using digital innovations: The application of AI, blockchain, cloud and data analytics. Annals of Operations Research, 308(1-2), 739. https://doi.org/10.1007/s10479-020-03620-w Fan, J. S. (2019). Employees as regulators: The new private ordering in high technology companies. Utah L. Rev., 973. Gill, S. S., Xu, M., Ottaviani, C., Patros, P., Bahsoon, R., Shaghaghi, A., Golec, M., Stankovski, V., Wu, H., Abraham, A., Singh, M., Mehta, H., Ghosh, S. K., Baker, T., Parlikad, A. K., Lutfiyya, H., Kanhere, S. S., Sakellariou, R., Dustdar, S., … Uhlig, S. (2022). AI for next generation computing: Emerging trends and future directions. Internet of Things, 19, 100514. https://doi.org/10.1016/j.iot.2022.100514 West, D., Ford, J., Ibrahim, E., & Montecchi, M. (2022). Strategic marketing. https://doi.org/10.1093/hebz/9780198856764.001.0001 Copyright 2023 by University of Phoenix. All rights reserved.
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